Section 321: Procedure for setting aside voidable transaction

321. Procedure for setting aside voidable transaction (1) The procedure set out in this section applies to— (a) a voidable preference; [Issue 3] I14 – 172 Revised Laws of Mauritius (b) a voidable charge; (c) an alienation of property with intent to defraud a creditor; and (d) a voidable gift. (2) To initiate the setting aside of a voidable transaction to which this section applies, the Official Receiver or liquidator shall, as soon as practicable, serve a notice that meets the requirements set out in subsection (3) on— (a) the other party to the transaction; and (b) any other party from whom the Official Receiver or liquidator intends to recover. (3) The notice shall— (a) be in writing; (b) state the Official Receiver’s or liquidator’s address; (c) specify the voidable transaction to be set aside; (d) describe the property or state the amount that the Official Receiver or liquidator wishes to recover; (e) state that the person named in the notice may object to the setting aside of the transaction if that person sends a written notice of objection to the Official Receiver or liquidator within 28 days after the notice has been served on that person; and (f) state that the transaction will be set aside as against the person named in the notice if that person does not object. (4) A voidable transaction is automatically set aside as against a person named in the notice if that person has not objected, by the sending of a notice by the Official Receiver or liquidator to the person not later than 5 working days after the expiry of the time limit specified in subsection (3) (e). (5) A notice of objection shall state the reasons for objecting. (6) The Court may, on the application of the Official Receiver or liquidator, set aside the voidable transaction in any case where a person named in the notice has given a notice of objection under subsection (4).